Reach Subsea (REACH) Q4 2025 earnings summary

Executive summary

• Q4 2025 financial results declined year-over-year due to lower vessel and asset utilization, delayed client decisions, weaker project mix, adverse currency effects, and higher depreciation and impairment charges.

• Despite financial headwinds, operational cash flow and liquidity remained strong, with a solid cash position and balance sheet.

• Major milestones were achieved in the Reach Remote program, including commercial deployments, successful campaigns, and the launch and certification of remote operations centers in Norway and Australia.

• The company is scaling its remote fleet, with additional vessels planned for 2026 and 2027, and is preparing for broader market adoption and long-term growth.

• The order backlog stands at NOK 1.2 billion, with a tender volume of NOK 10 billion, indicating robust future demand.

Financial highlights

• Q4 2025 revenue was NOK 606 million (NOK 603.7 million in one report), down from NOK 685 million (NOK 684.8 million) in Q4 2024.

• EBIT for Q4 2025 was NOK -60.5 million, compared to NOK 79.9 million in Q4 2024; EBITDA was NOK 228.3 million (margin 37.7%).

• Profit after tax/net profit for Q4 2025 was NOK -57.5 million, down from NOK 21.8 million in Q4 2024.

• Cash and cash equivalents at quarter-end were NOK 514 million (NOK 514.2 million in one report); equity ratio stood at 33.8%.

• Operational cash flow remained strong, and a new NOK 735 million loan facility was secured in December 2025; NOK 500 million bond issued in July 2025.

Outlook and guidance

• The outlook remains positive with a NOK 1.2 billion order backlog and NOK 10 billion in tender volume, and rising tender activity including USV-specific tenders.

• Fleet capacity for manned vessels will remain unchanged in 2026, with options extended for key assets.

• Remote fleet expansion is on track, with Reach Remote 3 and 4 expected to join in mid-2027 and certification timelines improving.

• Management expects normalization in 2026 as campaign ramp-up and remote unit economics improve.

• A dividend of NOK 0.17 per share will be proposed, consistent with the dividend policy.